Toncoin (TON) saw a notable price spike of over 8% following the unexpected release of Telegram CEO Pavel Durov, who had been detained by French authorities. This surge, however, is overshadowed by ongoing technical struggles within the TON blockchain, casting a shadow over what might seem like a purely positive development.
Durov’s Release – The Conditions and the Charges
Pavel Durov’s release on August 28 came after a tense four-day detention. The conditions of his release include judicial supervision, a hefty €5 million bond (approximately $5.5 million), and restrictions barring him from leaving France. Additionally, Durov is required to report to a police station every two weeks.
Durov was initially arrested on August 24 at Le Bourget airport near Paris, facing serious allegations including facilitating drug trafficking, organized fraud, and distributing pornographic content involving minors. Authorities also criticized his lack of cooperation with investigations, which allegedly hindered their efforts.
Adding to the controversy, French authorities have reportedly issued an arrest warrant for Nikolai Durov, Pavel’s brother and co-founder of Telegram. Nikolai is implicated in similar charges, including complicity in the possession and distribution of pornographic content involving minors.
Impact on Toncoin But An Initial Surge with Lingering Doubts
The news of Pavel Durov’s release briefly ignited a surge in Toncoin’s price, which spiked from $5.31 to $5.75—an 8.3% increase—within just 20 minutes of the announcement. However, this optimism was short-lived as the price quickly stabilized around $5.58, reflecting a notable 14.7% decline over the past week.
Technical Hiccups – TON Blockchain’s Reliability Under Scrutiny
Despite the initial market excitement, the TON blockchain’s reliability remains a pressing issue. The network experienced significant disruptions on August 27, halting block production for roughly seven hours. Although operations resumed the following day, another outage occurred, with the blockchain ceasing block production again at 16:23 UTC.
Also Read: TON Network Outage Triggers 22% Drop In Toncoin – Is Now The Time To Buy?
These disruptions were attributed to an overwhelming influx of transactions related to the new DOGS meme coin. The high volume of activity overwhelmed the network, leading to substantial delays and interruptions. While the TON team has managed to address these issues, concerns about the network’s capacity to handle future surges persist.
Toncoin’s recent price movement highlights the volatile nature of cryptocurrency markets, especially when intertwined with high-profile controversies. While Pavel Durov’s release provided a temporary boost, ongoing technical challenges within the TON blockchain suggest that the road ahead might be fraught with obstacles. Investors and users alike will be keenly watching how the TON team navigates these technical hurdles and the potential long-term impact on Toncoin’s performance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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